A California-based audit firm is being charged with conducting flawed audits and reviews of financial statements, which are critical sources of information for investors.

The SECs Enforcement Division alleges that Anton & Chia LLP and its accountants ignored numerous indications of fraudulent financial reporting by three of the firms audit clients microcap companies Accelera Innovations Inc., Premier Holding Corp., and CannaVEST Corp. For example, Acceleras public filings allegedly included revenue, assets, and liabilities from an entirely different company. The Enforcement Division alleges that instead of standing in the way of Acceleras fraud, Anton & Chia facilitated it.

Anton & Chias co-owners Gregory A. Wahl and Georgia Chung as well as former partner Michael Deutchman and former audit manager Tommy Shek are being charged along with the firm for their roles in the audits and/or interim reviews. The case will be scheduled for a public hearing before an administrative law judge, who will prepare an initial decision stating what, if any, remedial actions are appropriate.

Steven Peikin, Co-Director of the SECs Enforcement Division, added, As alleged in the order, Anton & Chia and its accountants left investors with false assurances that financial information for three microcap companies had been properly audited or reviewed. They had the opportunity to stop multiple frauds in their tracks but failed to do so.

Anton & Chia partner Richard J. Koch and former partner Rahuldev Gandhi settled SEC charges for their roles in the audits and interim reviews. They each agreed to pay $15,000 penalties and be suspended from appearing and practicing before the SEC as an accountant, which includes not participating in the financial reporting or audits of public companies. Gandhi is permitted to apply for possible reinstatement after three years and Koch can apply for possible reinstatement after two years.